It’s been indicated online by sources at Windows Central that Microsoft has had a difficult time with declining hardware sales, though, that Microsoft’s monthly user base has been jumping in a positive trend thanks to their plethora of game services like Hearthstone, Diablo, Call of Duty, World of Warcraft, Candy Crush, and Overwatch protecting their future within the market. This has left the company with a bid to bolster their plans for their latest hardware, which include handhelds and the latest iteration of the Xbox.
Microsoft’s brand new handheld, a PC Gaming OEM, not unlike ASUS, Lenovo, MSI, and Razer is set specifically on an Xbox-branded device. The source at Windows Central indicates the device is set to launch later in 2025 and is codenamed project “Kennan”. The handheld, a partner device, is expected to be more PC oriented and may likely run Windows operating software enabling storefronts such as The Microsoft Store and Xbox’s own Game Pass for PC with an ability to install Steam. The ability to reduce bloatware is also an expectation of Kennan, and the potential ability to control fan speed on the device. There is hope for streamlined controller software as well.
Windows Central also indicates that Microsoft has greenlit their next Xbox iteration all the way up to their CEO Satya Nadella. A premium console, alongside the new handheld and several controller options are slated for 2027. The console is said to be closer to Windows OS in interface and Xbox president Sarah Bond announced a project team to promote backwards and forwards compatibility. Xbox lead Phil Spencer teased the desire to promote third party store fronts moving forward like the Epic Game Store, GOG, itch.io, and Steam. The console will feature new controllers with direct-to-cloud connectivity allowing players to switch between devices with ease. Though some of these plans may change between now and 2027 and may be considered tentative.